Premier League teams have announced modifications to the FFP/PSR system for the 2025-26 season. Kieran
Maguire, a football finance expert, predicts that the new restrictions would damage Newcastle United.
Clubs unanimously agreed to revise the regulations for the 2025-26 campaign. The reform will bring the top flight closer to UEFA’s procedures, which revolve around the ability to spend a percentage of revenue.
Premier League clubs will allow UEFA competition teams to spend 70% of their revenue, climbing to 85% for non-European teams. As of yet, there is no sign that the £105 million teams are permitted to lose over a three-year period would be altered.
Previous reports suggested that a “luxury tax” was being discussed, in which clubs would be punished rather than awarded points for violating restrictions. Since the Saudi-backed takeover, FFP/PSR restrictions have limited Toon bosses’ ability to release the purse strings as much as they would want.
Newcastle failed to sign any players in January, despite an unparalleled injury crisis. Monetary expert Maguire highlighted why the new approach will further limit the Magpies’ spending.
“What does it mean in plain English?” “Five of the ‘Super League six’ can spend a lot more money, including financial teacher’s pet Brighton,” he said on social media. “Aspirational/ambitious clubs such as Aston Villa, Nottingham Forest, and Newcastle, who want to spend more money, will not be able to do so and instead need to cut.”
Let's not pretend we care about the new Premier League spending rules, what is important is HOW MUCH CAN WE SPEND or do we need to save? Based on assumptions of Player wages = 80% of total & player profits = best of last 1,2 or 3 this is the estimate. pic.twitter.com/Pt3ZNLIaVE
— Kieran Maguire (@KieranMaguire) April 11, 2024
However, there was some relief, with big commercial deals expected to restore Newcastle’s fortunes. Multi-million-pound collaborations with Adidas and Sela will be accounted for on this year’s balance sheet.
Champions League revenue, estimated at £35 million, should also be considered this summer. Maguire went on to say: “New deals from Adidas, Sela etc are likely to improve the position for NUFC.”
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